Home News Archives for June 2022

Month: June 2022

Censof Strengthens its Market Position in the Commercial and SME Segment

by Dimple Dimple No Comments

Kuala Lumpur, 15 June 2022 – Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions, today announced that it has acquired 41,680 treasury shares in Asian Business Software Solutions Pte Ltd (“ABSS”) for SG$1.28 million (equivalent to approximately RM4.09 million). The 41,680 treasury shares represent a 7.93% equity interest in ABSS, increasing Censof’s equity interest in ABSS to 97.00% from 89.07% currently, upon completion of the acquisition.

The acquisition is expected to improve Censof’s earnings with its higher equity interest in ABSS. It will also enhance the Group’s long-term growth potential as well as strengthening its position as a market leader to provide the full spectrum of the financial management solutions across all levels of market segment.

“This additional investment in ABSS is yet another one of our strategic decisions to enhance our financial performance in the near future. As we have always said, Censof is not only offering financial management solutions to the government sector, it is also aggressively expanding into the commercial and SME segment. ABSS is an excellent platform for us to grow. Back in 2015, we have acknowledged ABSS’ potential, with its strong presence in Southeast Asia and that was when we decided to acquire a 51% equity interest. Since then, we have increased our stake to 89.07% as of April last year. Over the last 6 years, we have seen exponential growth in ABSS. To date, ABSS has declared a total dividend of SG$6.3 million or approximately RM20.0 million since the acquisition in 2015. On average, ABSS serves more than 300,000 SME clients across Malaysia, Singapore and Hong Kong, where ABSS is currently the market leader in Hong Kong and Singapore,” said Ameer Shaik Mydin, group managing director of Censof.

He further added that good prospects for the financial management solutions offered by ABSS are looming, as demand is anticipated to increase given its track records. ABSS has achieved an impressive revenue growth at a compound annual growth rate of 18.46% from year 2016 to 2022. Opportunities are endless as the Group is also tapping into the micro small and medium enterprises (“SME”), leveraging on the Financio software. The customer base for the Financio software is expected to double up within the next 2 years, barring any unforeseen circumstances. Financio, a product of ABSS, is a user-friendly cloud accounting software developed in English, Bahasa and Chinese that automates and simplifies accounting tasks, designed for small businesses. Being cloud-based, the software can be easily accessible from anywhere with very competitive pricing.

“We are glad our strategy is falling into place as planned, and as a result our earnings from our commercial and SME segment has expanded by over 50% from FY2021 to FY2022. This synergistic acquisition is deemed to unlock the opportunities for us to progress further to tap into the other various SMEs, which include the start-ups, micro and small businesses. There is no doubt that we are putting our full effort to achieve digital transformation, in line with the government’s National Economic Recovery Plan to encourage more SMEs to start their digital transformation journey. Moving forward, Censof will continue to focus on growing its core businesses, as well as exploring inorganic opportunities such as penetrating into the area of digital technology via merger and acquisition exercises that could ultimately boost the Group’s financial performances,” he added.

Commenting on the acquisition, chief executive officer Rhys Brown said, “We are excited to have additional investment from Censof, following another strong financial year. While others in our industry struggle with balancing profitability and expansion, ABSS has managed both extremely well. The opportunity we have is huge, with over 300,000 SME customers. Moreover, our transition from established on-premise products to fully cloud-enabled solutions, like Financio, provides a great platform for rapid growth. Our recent strategic partnerships with RHB, DBS & Maybank combined with an ever-expanding partner network of accountants and bookkeepers will support significant customer migration and growth – we are just getting started.”

ABSS is a developer and leading supplier of ABSS-branded financial management and accounting software that supports the Asian small and medium enterprises and cloud-based accounting product, namely Financio that caters for start-ups and entry level SMEs.

Censof Achieves Revenue and Profit Before Tax of RM110.1 Million and RM24.1 Million for FY2022

by Dimple Dimple No Comments

Declares Interim Dividend of 0.75 Sen

Full year FY2022 Highlights

• Revenue of RM110.1 million, up 26.0%
• Operating profit rose 101.5% from 11.5 million to RM23.1 million
• Declared an interim single-tier dividend of 0.75 sen per share for FY2022

Fourth quarter FY2022 Highlights

• Revenue increased 38.4% to RM44.8 million
• Profit Before Tax improved 12.5% to RM15.0 million.

KUALA LUMPUR, May 31 (Bernama) — Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions, reported its unaudited financial results for the fourth quarter (“Q4FY2022”) and full year ended 31 March 2022 (“FY2022”) on 30 May 2022.

For the full financial year, Censof achieved a 26.0% growth in revenue to RM110.1 million, from RM87.4 million in the previous year. The increase was mainly driven by the higher contribution from the financial management solutions for government segment (“FMS-G”) and financial management solutions for commercial and small and medium enterprises segment (“FMS-C & SME”). The revenue was further enhanced by the contribution from the newly set up Digital Technology (“DT”) segment, upon the acquisition of a robotic process automation (“RPA”) business under Cognitive Consulting Sdn Bhd during the year. The revenue from the DT segment was solely derived from cloud computing services, electronic tendering services and RPA.

The profit before tax and profit after tax and minority interests (“PATAMI”) were relatively lower, year on year at RM24.1 million and RM18.4 million respectively, in light of the absence of one-off contributing factors where the recognition of non-recurring items in the preceding year boosted FY2021’s operating profit and PATAMI. Excluding the non-recurring items, FY2022’s operating profit of RM23.1 million was more than 100% higher than FY2021’s operating profit of RM11.5 million. Similarly, PATAMI surged over 100% from RM8.3 million FY2021 to RM17.5 million in FY2022 after excluding the non-recurring items of fair value adjustment and gain on disposal of other investments for both financial year.

For the 3 months ended 31 March 2022, the Group recorded a revenue growth of 38.4% to RM44.8 million, from RM32.4 million in the same quarter last year, primarily attributed to the establishment of the DT segment in January 2022 and higher revenue generated by the FMS – G segment. Higher project deliverables and new project order enabled the latter segment to record a revenue growth of 40.1% to RM35.6 million. Consequence to the higher revenue, profit before tax surged 12.5% from RM13.4 million to RM15.0 million.

Censof’s financial position as at 31 March 2022 remained healthy with cash and cash equivalents of RM30.0 million. Net assets per share attributable to ordinary equity holders of the company was 17.84 sen.

“We are delighted that Censof has achieved yet another set of satisfactory full year results for FY2022 despite a challenging year. The accounting software and solutions have once again proven its resilience and growth potential. Our fourth quarter yet again remains our strongest quarter with higher revenue recognised from the FMS – G segment. At the PBT level, the FMS – G segment’s earnings increased significantly by over 300%, in contrast to the third quarter, supported by the higher maintenance revenue from the renewal of contracts from our existing government agencies customers, back in January. We also experienced higher sales contribution from the fast-tracking project during this quarter.

We remained aligned with the government’s positive digitalisation transformation agenda, in particular the emphasis on cloud-based financial solutions and applications. We will continue to explore investments and partnership opportunities in the digital technology field to further innovate our products and solutions. We will also pioneer the adoptions and compliances of advanced technologies plus the latest accounting standards to be offered to our large customer base, including the commercial and SMEs sector,” said group managing director of Censof, Ameer Shaik Mydin.